Financial Performance Management

Financial Performance Management refers to the ways that a company manages and monitors financial results across an organization. The primary purpose is to compare actual results to budgets and forecasts and make adjustments accordingly so that companies will be better equipped to meet their financial goals.

Ventana Research describes financial performance management as a specific set of capabilities that includes "defining their company's key performance indicators, formulating strategic plans and forecasts, handling performance reporting, and increasing finance operational efficiency and execution company-wide."

Of course, a mixture of historical data, real time information and forecasting in order to achieve a multi-dimensional analysis of financial results. As with collaborative disclosure management, financial disclosure management also implies a unification of key processes: close, consolidation, reporting, planning, and analysis.

When performed optimally, financial performance management allows organization to experience a number of benefits:

More agility when faced with unexpected business events through scenario modelling, rolling forecasts and what-if scenarios

Less focused on the operational intricacies and more focused on becoming a strategic function for executives to use when taking action

Identify underlying trends and interpret large amounts of data quickly

Join departments to a central vision so that decisions can be made with the core goals and financial truth top of mind, with finance at the heart of every decision